Money - International
French supermarket group Carrefour to buy Brazil's Grupo Big in US$1.3b deal
A Carrefour logo is seen on a Carrefour Hypermarket store in Montreuil, near Paris February 5, 2018. u00e2u20acu201d Reuters pic

PARIS, March 24 ― French supermarket retailer Carrefour has agreed to buy Grupo Big, Brazil's third-biggest food retailer, in a deal valuing the Brazilian firm at around US$1.3 billion (RM5.37 billion), which Carrefour said would boost its earnings.

Carrefour said today that it would buy the company from Walmart and investment firm Advent International.

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It added that the transaction values Grupo BIG at an enterprise value of 7 billion Brazilian reals.

Carrefour said the acquisition offered significant synergy potential from year one, rising gradually to represent a net additional contribution to EBITDA (earnings before interest, tax, depreciation and amortisation) of 1.7 billion Brazilian reals, or roughly €260 million, on an annual basis three years after the closing of the transaction.

"Our Group is on the offensive: The acquisition of the BIG Group is a major transformation movement for Carrefour Brazil,” said Carrefour Chairman and CEO Alexandre Bompard. ― Reuters

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